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China Keeping the U.S. Deficit SAFE

Is the State Administration of Foreign Exchange, the organization charged with managing China's $2.85 trillion in FX reserves, losing faith with the U.S. Treasury? No.

In 2010, investors were abuzz with stories about the diversification of China's monster FX reserves. SAFE was said to be buying Japanese, Korean, Spanish debt. Anything, it seemed, but U.S. Treasury debt.